If, on the other hand, the licensee is an actual or likely component supplier, it is necessary to examine what is the impact of the agreement on this activity.

If by tooling up to use the licensor's technology the licensee ceases to use his own technology on a stand-alone basis and thus to be a component supplier, the agreement restricts competition that existed prior to the agreement.

An investment of one first-tier component supplier is integrated within the definition of a global project if at least half the output resulting from that investment is delivered to the manufacturer concerned at the plant in question.